P&G Lawsuit


There was a lot of negative press surrounding the P&G lawsuit that took place back in 2021. Many felt it was unfair for a major cosmetics company to be sued by one of their own suppliers over an alleged breach of contract. These accusations were thoroughly investigated by the media and found to be without merit. In turn, P&G lawyers issued a statement denying any liability and stating that all cases were handled properly and within the rules of the law.

A few months later, it became clear that this case was not going to go away quietly.

The original complaint was still in progress and the parties were deadlocked. The case eventually went to trial but this time, it was P&G that was seeking relief from the situation. They hoped to resolve the long standing issues surrounding the case and come out on top. But what did end up happening was a messy and expensive affair. So how did the case end up in court and who was ultimately responsible?

The plaintiffs in the P&G lawsuit were seeking a financial compensation due to the stress and disruption they had to go through after a supplier rejected their products. To begin with, the lead attorney in the case, Michael Yikan, did not initially succeed in obtaining any form of financial recovery. He did, however, manage to get the case wrapped up in March. Yet, the discovery phase of the lawsuit proved too difficult for him and the parties soon announced they would move for summary judgment – which is when the lawsuits began.

Despite having the advantage of a strong legal team, Yikan did not think the case would be a simple drawn out victory.

This was despite the fact that P&G’s top lawyer, James D. Guterich, had endorsed him and was even part of the legal team during the discovery process. In fact, it was Guterich who supervised the hiring of various experts and even flew to New York to interview some witnesses.

In the months that followed, P&G’s financial troubles did not abate. In fact, they went into freefall, filing bankruptcy in 2021. While they were able to settle with the plaintiffs’ lawyers for a lot less than what was owed, the case did not close until 2021. This was because Guterich was unable to come up with a large enough settlement to cover all the charges against the company.

So far, P&G has been successful in getting its claims ruled in the favor of the plaintiffs. A recent ruling stated that a $6 million settlement should be paid to the man who became paralyzed due to a P&G product. While this was the largest ruling in the case so far, it was not the biggest. On top of that, the judge was impressed by the efforts P&G put in to help their customer feel “comfortable” about buying their products.

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